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Name
Professor
Economics
2/24/2021
Stock markets

Apple incorporation is one of the world’s largest multinational companies dealing with

technological devices and software’s. Apple specializes in designing and manufacturing mobile

technological devices in various plants across the world. Moreover, it has revolutionized the

technological industry through various unveiling of new technologies. In this study we shall look

at the history of apple incorporation, its present performance and its impact in the American

economy.

The history of Apple

Apple company was founded in the year April 1st 1971 by three persons namely Steve

Jobs, Steve Wozniak and Ronald Wayne.Ronald Wayne was named a cofounder for a 10% stake.

According to Barnett, (83) the Homebrew Computer Club meeting that was held in the founders

locality, was the source of inspiration towards building the vast technological apple empire.

Apple was preconceived from an initial partnership of selling blue boxes that enabled

wireless communication between persons from different localities wirelessly. Steve Jobs and

Steve Wozniak used the profits from this initial business to set up their first company, apple. The

first production site for this company was in Steve Jobs parents’ home in California. Rock and

Zeevaart ,(915-923) suggest that the main motive of these inventors was to make portable

computers that could easily be used in office spaces, homes or even work places.
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At the initial stages, between the years 1971 and 1977, apple produced computers and

sold them without either the monitors or screen. Incorporation of the sale of screens, monitors

and keyboards came way later after the year 1977, as the company’s revenues allowed. Barnett

(83) highlights that after the peak of apple in the year 1990, the company suffered several set

barks including fall out in present leadership as well as growing stiff competition from other

technological companies like Microsoft. By this time Steve Jobs, had formed and moved to his

own company, Next software. Apple company seemed to be going down the drain according to

many analysts of time.

Apple latter bought Steve jobs company Next software, as it was greatly in need of an

operating system. Apple came back into busines by the year 2000 after the interim CEO, Steve

Job crafted an alliance with their competitor Microsoft. Under his leadership he was able to bring

about a new brand philosophy. Dicken (68) highlights that through the forged partnership apple

was able to develop its own version of operating system Mac OD. Jobs is credited for having

revamped the apple company years after it went into a downward trajectory after his departure.

Apple has been a giant in the telecommunication industry greatly influencing how

computers are used. Its history spans over a period of more than 30 years and it’s an evidence of

how creativity pays. The main turning point for apple as an incorporation was the personal

computers that gave it an edge over its competitors.

Products the company produces

The company produces diverse technological items ranging from mobile phones, tablet

computers, personal computers and computer software. The product line for apple incorporation

is mainly Macintosh, Apple iPod classic, iPods, and iPhones. When it comes to computers apple
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produces diverse computer models namely Apple III, Apple Lisa, Apple II and power mac (Rock

and Zeevaart 915-923).

Apple also ventured into the production of mp3 players dabbed as iPod. Moreover, the

company also owns a media software player license referred to as iTunes. Other accessories the

company produces ranges from apple TV, apple watches, Air Pods and iCloud services.

Steve jobs company also thrives in app making for instance during its hard economic times it

thrived on a killer app, the Aldus Corporation’s PageMaker.Hammington (49-49) confirms that

this application revolutionized the printing to be within an individual’s personal computer.

In the close of the 21 century the company embarked on a plan to invent new products in

the market for instance in 2004 it introduced the new Power Mac G5. Dicken (68) affirms that

inventions and development of products such as iMac enabled the market share of the company

to drastically improve form 2% to 13% percent. This is was mainly due to the fact that the

company combined CRT display and CPU design.

Financials

The total revenue for apple incorporation as at 2018 was 53.8 billion US dollars, for just

the first quarter. The costs of sales were 33.5 billion US dollars. The cost of sales for apple is

generally inclusive of the cost of products and services. Thus, in the same financial year, the

company made a net profit of 10.4 billion Us dollars. A profit of 10.4 billion dollars is arrived at

after subtracting all the expenses. In the year 2020 the company had a net sale of 274.5 billion

while having an operating income of 66 billion us dollars. According to Ripstein and Letsou

(64), for the first quarter of the year 2021 the company has posted an all-time record revenue of

111 billion us dollars for its first quarter that ended in December 2020.
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Daily highs and lows stock values for apple

Organisation structure

The organization structure of apple incorporation is hierarchical but unitary at the same time.

There are several divisions which report to superior organs of the entity. An illustration shows

that apple deals independently with each product, for instance the different product bases are

apple, Mac Os or iOS. There are several vice presidents for different products thus much more

autonomy regarding decision making. On top there are senior vice presidents in charge of

software’s and hardware engineering. Other senior vice presidents include the chief financial

officers, a general counsel and the hardware technologist. Apple teams operate unitarily with

team work being the driving force under Tim Cook’s leadership. Adjacent to the vice presidents

of the various department leader ranging from chief designers as well as the chief operating

officers. Decision making is centralised although managers are able to factor in considerations of

employees through middle level management.

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Graphical representation of apple structure

Location

The location of the headquarters of apple company is in Apple park , California in the united

states. Hammington (49-49) highlights that the company also has other 28 offices in 25 countries

across the world. This is for purposes of easy distribution and management of its vast supply

chains. Moreover, the total number of retail stores the company runs is 506 in number, as at the

year 2018. In the united states of America, most of these stores operate indoor, in malls with only

a few being on stand alone streets. Apple presence is greatly felt across united states as 44 out of

the 50 states have a physical apple store.

Board of directors

The current CEO of apple incorporation is Tim Cook. He is assisted by senior vice presidents

Katherine Adams, Eddy Cue and Craig Federighi. Linzmeyer (34) lists the board of directors for
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the incorporation include Arthur D. Levinson, James A. Bell, Tim Cook, Albert A. Gore Jr,

Andrea Jung, Monica Lozano, Ronald D. Sugar, Susan L. Wagner.

Global Scale

Ribstein and Letsou (64) assert that Apple operates on a global scale and especially with the

development of online trade, people in countries without a physical presence of apple store can

access apple products through amazon platforms. As stated earlier it has over 500 retail stores

across the world and the numbers continue increasing.

Challenges faced

There is a challenge of navigating through the uncertainties of the economic especially with the

onset of the corona virus pandemic and economic depressions. According to Linzmeyer (34),

most governments make policies that don’t favour production in their companies. For instance,

during Trumps administration, the iPhone giant was thinking of shifting its production to China

which seemed more hospitable. This is because the global supply chains have been greatly

disrupted thus resulting into low sales and revenues. The technicality of dealing with data

security is another challenge the company faces. Apple has henceforth had to deal with the

technicalities of ensuring that the data for consumers is kept secure. Stiff competition from other

players in the telecommunication industry including Chinese companies is proving a

difficulty.5G networks is also about to be launched and competitors are already flooding the

market with 5 g enabled phones. Apple is still lagging behind in this regard.

How it affects the united states

Apple as a company greatly contributes to the total GDP of the American nation. The

contribution to the GDP of the united states is projected to be at 350 billion us dollars by 2023.
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Sagers (70) suggests that the company employs thousands of employees who get their livelihood

from the company. In this way, the company contributes to the elimination of unemployment of

many in the nation. The indirect employment created is global. In the supply chains, there are

multiple parties who benefit. Up to 2.3 million jobs have been created directly or indirectly by

apple corporation. The company has also attracted foreign exchange and foreign investors as

people are acquiring the company’s shares thus resulting to spill over effect on the economy.
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Work Cited

Ribstein, Larry E, and Peter V Letsou. Business Associations. Cincinnati, Ohio: Anderson, 2014.

Print.

Dicken, Peter. Global Shift. London: SAGE, 2016. Print.

Barnett, Jonathan M. Innovators, Firms, And Markets. Califonia, 2017. Print.

Hammington, James. "Inexpensive Cd-Rom Systems Could Push More Corporate Data Onto

Optical Disks." Business Information Review 4.2 (1987): 49-49. Web.

Rock, Christopher D., and Jan A. D. Zeevaart. "Abscisic (ABA)-Aldehyde Is A Precursor To,

And 1′,4′-Trans-ABA-Diol A Catabolite Of, ABA In Apple." Plant Physiology 93.3

(1990): 915-923. Web.

Sagers, Chris. United States V. Apple. Harvard University Press, 2019. Print.

Linzmayer, Owen W. Apple Confidential 2.0. San Francisco, Calif.: No Starch Press, 2008. Print.